I am looking for a few essential mods for Morrowind. Here is what I want:

-Graphics update (MGE)
-Some sort of a better bodies mod
-Combat system revamp to be more like Oblivions (if possible)

Thats it so far, I might include more later.

-Darker Morrowind or Vibrant Morrowind; depending on your mood.
-Better Bodies
-Aerelorn's Block Mod, which lets you hold down a key to block. The Dodge mod to make Unarmoured act sort of like Oblivion's. I can't think of any others, but there are some out there.

EDIT: Oh, and get the Morrowind Code Patch. It's so awesome, it got me playing again after something like two years. Being able to run up the Vivec Canton ramps without the rain coming through is making me giddy.

I have http://www.gamesas.com/index.php?/topic/1032302-wipz-realistic-combat/page__p__14952602__fromsearch__1&#entry14952602 for you if you're interested in changing the combat - this is still very much a showcase mod but it'll do what you want it to do (usually).